[House Hearing, 118 Congress] [From the U.S. Government Publishing Office] AN EXAMINATION OF TSA'S FISCAL YEAR 2024 BUDGET AND PRIORITIES ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON TRANSPORTATION AND MARITIME SECURITY OF THE COMMITTEE ON HOMELAND SECURITY HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTEENTH CONGRESS FIRST SESSION __________ JUNE 22, 2023 __________ Serial No. 118-20 __________ Printed for the use of the Committee on Homeland Security [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://www.govinfo.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 54-203 PDF WASHINGTON : 2023 COMMITTEE ON HOMELAND SECURITY Mark E. Green, MD, Tennessee, Chairman Michael T. McCaul, Texas Bennie G. Thompson, Mississippi, Clay Higgins, Louisiana Ranking Member Michael Guest, Mississippi Sheila Jackson Lee, Texas Dan Bishop, North Carolina Donald M. Payne, Jr., New Jersey Carlos A. Gimenez, Florida Eric Swalwell, California August Pfluger, Texas J. Luis Correa, California Andrew R. Garbarino, New York Troy A. Carter, Louisiana Marjorie Taylor Greene, Georgia Shri Thanedar, Michigan Tony Gonzales, Texas Seth Magaziner, Rhode Island Nick LaLota, New York Glenn Ivey, Maryland Mike Ezell, Mississippi Daniel S. Goldman, New York Anthony D'Esposito, New York Robert Garcia, California Laurel M. Lee, Florida Delia C. Ramirez, Illinois Morgan Luttrell, Texas Robert Menendez, New Jersey Dale W. Strong, Alabama Yvette D. Clarke, New York Josh Brecheen, Oklahoma Dina Titus, Nevada Elijah Crane, Arizona Stephen Siao, Staff Director Hope Goins, Minority Staff Director Natalie Nixon, Chief Clerk Sean Jones, Deputy Chief Clerk ------ SUBCOMMITTEE ON TRANSPORTATION AND MARITIME SECURITY Carlos A. Gimenez, Florida, Chairman Clay Higgins, Louisiana Shri Thanedar, Michigan, Ranking Nick LaLota, New York Member Laurel M. Lee, Florida Donald M. Payne, Jr., New Jersey Mark E. Green, MD, Tennessee (ex Robert Garcia, California officio) Bennie G. Thompson, Mississippi (ex officio) Vacancy, Subcommittee Staff Director Alex Marston, Minority Subcommittee Staff Director Halle Sarkisian, Subcommittee Clerk C O N T E N T S ---------- Page Statements The Honorable Carlos A. Gimenez, a Representative in Congress From the State of Florida, and Chairman, Subcommittee on Transportation and Maritime Security: Oral Statement................................................. 1 Prepared Statement............................................. 2 The Honorable Shri Thanedar, a Representative in Congress From the State of Michigan, and Ranking Member, Subcommittee on Transportation and Maritime Security: Oral Statement................................................. 5 Prepared Statement............................................. 6 The Honorable Bennie G. Thompson, a Representative in Congress From the State of Mississippi, and Ranking Member, Committee on Homeland Security: Oral Statement................................................. 3 Prepared Statement............................................. 4 Witness Hon. David Pekoske, Administrator, Transportation Security Administration, U.S. Department of Homeland Security: Oral Statement................................................. 7 Prepared Statement............................................. 9 AN EXAMINATION OF TSA'S FISCAL YEAR 2024 BUDGET AND PRIORITIES ---------- Thursday, June 22, 2023 U.S. House of Representatives, Committee on Homeland Security, Subcommittee on Transportation and Maritime Security, Washington, DC. The subcommittee met, pursuant to notice, at 2:21 p.m., in room 310, Cannon House Office Building, Hon. Carlos A. Gimenez (Chairman of the subcommittee) presiding. Present: Representatives Gimenez, Higgins, LaLota, Lee, Thanedar, Garcia, and Thompson (ex officio). Mr. Gimenez. Good afternoon. The Committee on Homeland Security, Subcommittee on Transportation and Maritime Security will come to order. Without objection, the Chair may declare the subcommittee in recess at any point. The purpose of this hearing is to examine the priorities of TSA and the agency's budget request for fiscal year 2024. I would like to thank our distinguished witness, Administrator David Pekoske, for joining us today. I now recognize myself for an opening statement. Welcome, Administrator Pekoske. Today, we will discuss the Transportation Security Administration's fiscal year 2024 budget request. But first, I would like to congratulate you on your recent confirmation for a second 5-year term to lead the TSA. This committee is deeply appreciative of your willingness to continue to serve. Your testimony today comes at a time where our country and the traveling public rely on the capabilities of the TSA now more than ever. The TSA was formed nearly two decades ago with--tasked with extensive responsibilities, including protecting our Nation's aviation and transportation systems. As you know, the challenges and threats facing our Nation's aviation and transportation systems are ever-changing and complex. During your term as--first term as TSA administrator, you worked diligently to realign TSA's strategic priorities and reorganize the agency to reflect the evolving mission--mission on needs. The more than 60,000 men and women of today's TSA play a crucial role in keeping our country safe and secure. It is the responsibility of Congress to ensure that TSA and its work force have the necessary resources to address various challenges and threats and keep Americans safe. With that said, TSA's 2024 budget request includes $1.1 billion for pay increases for TSA work force. While I am supportive of the TSA work force, many Members of our committee would prefer to take a targeted approach with potential pay increases. A targeted approach would ensure that only front- line TSA personnel are getting a pay increase. Instead, TSA is proposing a pay increase across the board, including for already highly-paid senior personnel at TSA headquarters. Last month, the House Appropriations Subcommittee on Homeland Security held a markup for fiscal year 2024 Homeland Security bill. Included in that bill is a targeted pay increase for Transportation Security Officers and a total of $5.9 billion for the front-line screening work force. This is an $856 million increase above fiscal year 2023 to fund pay increases for TSO--TSOs, which I support. I want to emphasize that funding constraints, including TSA's top-line pay equity requests, have led to continued delays in investing in new, more effective security technology, given the current fiscally- constrained environment. TSA's fiscal 2024 budget request diverts funding from key areas, such as much-needed investments in security technology. Investments in security technology such as computer tomography and Credential Authentication Technology, CAT, must remain a top priority as a cost-effective, proven solution to decrease risk to the transportation system. We must also ensure that TSA is being proactive in shortening the time it takes to develop and pilot new technologies and deploying them in the field. TSA's fiscal 2024 budget request includes only $70 million to procure additional CT systems. This is significantly less than the amount that was appropriated in fiscal year 2023. Under TSA's fiscal 2024 request, and based on past, present, and current projected funding, TSA will not meet full operational capability for CT machines until fiscal year 2042. It goes without saying that's a little bit slow. Fortunately, the House Appropriation's fiscal 2024 Homeland Security bill includes $105.4 million for CT systems, which makes up to--up to $30 million shortfall from TSA's budget request. Thank you once again for being here, Administrator Pekoske. I look forward to your testimony and answers. [The statement of Chairman Gimenez follows:] Statement of Chairman Carlos A. Gimenez Welcome, Administrator Pekoske. Today, we will discuss the Transportation Security Administration's fiscal year 2024 budget request. But first, I would like to congratulate you on your recent confirmation for a second 5-year term to lead the TSA. This committee is deeply appreciative of your willingness to continue to serve. Your testimony today comes at a time when our country and the traveling public rely on the capabilities of the TSA now more than ever. The TSA was formed nearly two decades ago and tasked with extensive responsibilities, including protecting our Nation's aviation and transportation systems. As you know, the challenges and threats facing our Nation's aviation and transportation systems are ever-changing and complex. During your first term as TSA administrator, you worked diligently to realign TSA's strategic priorities and reorganize the agency to reflect evolving mission needs. The more than 60,000 men and women of TSA play a crucial role in keeping our country safe and secure. It is the responsibility of Congress to ensure that TSA and its workforce have the necessary resources to address various challenges and threats and keep Americans safe. With that said, TSA's 2024 budget request includes $1.1 billion dollars for pay increases for the TSA workforce. While I am supportive of the TSA workforce, many Members of our committee would prefer to take a targeted approach with potential pay increases. A targeted approach would ensure that only front-line TSA personnel are getting a pay increase. Instead, TSA is proposing a pay increase across the board, including for already highly-paid senior personnel at TSA headquarters. Last month, the House Appropriations Subcommittee on Homeland Security held a mark-up for the fiscal year 2024 Homeland Security bill. Included in that bill is a targeted pay increase for Transportation Security Officers (TSOs) and a total $5.9 billion for the front-line screening workforce. This is an $856 million increase above fiscal year 2023 to fund pay increases for TSOs, which I support. I want to emphasize that funding constraints, including TSA's topline pay equity request, have led to continued delays in investing in new, more effective security technology given the current fiscally- constrained environment. TSA's fiscal year 2024 budget request diverts funding from key areas such as much-needed investments in security technology. Investment in security technology such as Computed Tomography (CT) and Credential Authentication Technology (CAT) must remain a top priority as a cost-effective, proven solution to decrease risk to the transportation system. We must also ensure that TSA is being proactive and shortening the time it takes to develop and pilot new technologies and deploying them to the field. TSA's fiscal year 2024 budget request includes only $70 million to procure additional CT systems. This is significantly less than the amount that was appropriated in fiscal year 2023. Under TSA's fiscal year budget 2024 request, and based on past, present, and current projected funding, TSA will not meet full operational capability for CT machines until fiscal year 2042. It goes without saying, this is simply too slow. Fortunately, the House Appropriations fiscal year 2024 Homeland Security bill includes $105.4 million for CT systems, which makes up the $30 million shortfall from TSA's budget request. Thank you once again for being here, Administrator Pekoske. I look forward to your testimony and answers. I now recognize the Ranking Member, the gentleman from Michigan, Mr. Thanedar, for his opening statement. Mr. Gimenez. I will now recognize the Ranking Member of our committee, Mr. Thompson, from Mississippi. Mr. Thompson. Thank you very much, Mr. Chairman. Good afternoon, Mr. Administrator. Good seeing you. Hope all is well. Thank you, Chairman Gimenez, for holding this hearing. To Administrator Pekoske, as I said, thank you for joining us today. I'm thankful for the steps that you've taken to expand workplace rights and critical pay increases for TSA workers who've long been left behind. Those steps were made possible by the historic funding provided by Democrats in last year's omnibus spending bill. With 30 percent pay increases set to hit paychecks next month, TSA has already seen a drastic decrease of 40 to 50 percent attrition among TSA work force. I might add that, as I travel through airports, I've never seen so many smiling faces. The TSOs deserve it. They've done a wonderful job, in spite of the low pay, and I'm happy that we were able to start the process. But as you know, we need to finish it too. So higher pay will enable TSA to keep us during this busy summer travel, save money on training new personnel, and increase security by keeping TSOs with security and expertise within the agency. I know some of my colleagues across the aisle want to limit these life-changing pay increases to only front-line airport checkpoint screening personnel. This misguided attempt to protect the workers who need it most would actually deny much-needed equity to explosive specialists, canine handlers, Federal Air Marshals, cybersecurity experts, and other work essential to TSA's mission. It would also disincentivize career advancement and rob TSA of experienced veteran leaders among its work force. It is absolutely vital that we work with our colleagues on the Appropriations Committee to finish what we started and fully annualize these pay increases and safeguards for workplace rights for all TSA workers. I support the additional $1.1 billion requested by President Biden to cover these initiatives for a full year in fiscal year 2024. We cannot go back on a promise to the hardworking men and women of TSA. Congress must consider all possible solutions to this funding challenge, including increasing passenger security fees that have remained stagnant for many years, despite inflation and increases in airline ticket prices. This is why I've introduced the Fund the TSA Act, to provide TSA with the resources it needs to invest in its work force and the next generation of screening technologies by enacting a modest increase to passenger fees and indexing future fee amounts to inflation. This legislation would also end the diversion of security fees, returning to TSA approximately one-third of fee collections that have been taken away to offset unrelated Government spending. Mr. Chairman, I request unanimous consent to enter into the record a letter from Everett Kelley, president of the American Federation of Government Employees, in support of the Fund the TSA Act and full pay and labor rights for TSA workers.* --------------------------------------------------------------------------- * The information was not available at the time of publication. --------------------------------------------------------------------------- I'd like to thank Administrator Pekoske for his support for the TSA work force and for his work to safeguard American travelers. I look forward to hearing more about his plans for the coming fiscal year and for the future of the agency. Thank you, and I yield back. [The statement of Ranking Member Thompson follows:] Statement of Ranking Member Bennie G. Thompson June 22, 2023 I am thankful for the steps Administrator Pekoske has taken to expand workplace rights and critical pay increases for TSA's workers, who have long been left behind. Those steps were made possible by the historic funding provided by Democrats in last year's Omnibus spending bill. With 30 percent pay increases set to hit paychecks next month, TSA has already seen a dramatic decrease of 40 to 50 percent in attrition among the TSA workforce. Higher pay will enable TSA to keep up with busy summer travel, save money on training new personnel, and increase security by keeping TSOs with seniority and expertise within the agency. I know some of my colleagues across the aisle want to limit these life-changing pay increases to only front-line airport checkpoint screening personnel. This misguided attempt to protect the workers who need it most would actually deny much-needed equity to explosives specialists, canine handlers, Federal Air Marshals, cybersecurity experts, and other workers essential to TSA's mission. It would also disincentivize career advancement and rob TSA of experienced veteran leaders among its workforce. It is absolutely vital that we work with our colleagues on the Appropriations Committee to finish what we started and fully annualize these pay increases and safeguards for workplace rights for all TSA workers. I support the additional $1.1 billion requested by President Biden to cover these initiatives for a full year in fiscal year 2024. We cannot go back on our promise to the hardworking men and women of TSA. Congress must consider all possible solutions to this funding challenge, including increasing passenger security fees that have remained stagnant for many years, despite inflation and increases in airline ticket prices. That is why I have introduced the Fund the TSA Act to provide TSA with the resources it needs to invest in its workforce and the next generation of screening technologies by enacting a modest increase to passenger fees and indexing future fee amounts to inflation. This legislation would also end the diversion of security fees, returning to TSA approximately one-third of fee collections that have been taken away to offset unrelated Government spending. I would like to thank Administrator Pekoske for his support for the TSA workforce and for his work to safeguard American travelers. I look forward to hearing more about his plans for the coming fiscal year and for the future of the agency. Mr. Gimenez. Without objection. I now recognize the Ranking Member of the subcommittee, the gentleman from Michigan, Mr. Thanedar, for his opening statements. Mr. Thanedar. Thank you, Chairman Gimenez, for calling today's hearing. Thank you to Administrator Pekoske for joining us. We stand at a critical junction for the Transportation Security Administration as we in Congress consider whether to invest the resources necessary to ensure the continued security of our transportation system. Last December, Democrats in Congress provided significant resources in the omnibus funding bill to increase pay and collective bargaining rights for TSA workers, finally putting them on equal footing with other Federal employees. Increased pay will begin to hit TSA employees' paycheck next month, and TSA's already seeing major positive impacts. Drastically, more people are applying to TSA positions. Trends indicate that TSA's attrition rates, which have been unsustainably high, may drop as much as 50 percent under the new pay structure. Lower attrition will not only allow the agency to save millions on hiring and training employees who leave months later, but will also improve security as TSA develops a highly-skilled, experienced work force. Going forward, we must provide TSA with the funding to continue these critical work force initiatives for a full year in 2024. Yesterday, the House Appropriations Committee marked up the bill put forward by the Republican majority to fund the Department of Homeland Security for 2024. I was glad to see that Republicans are now following Democrats' lead to provide pay increases for Transportation Security Officers, or TSOs. Unfortunately, the bill prohibits increased pay for any TSA employee who is not a TSO. This group of employees is critical to TSA's security mission and includes Federal Air Marshals, canine handlers, bomb technicians, cybersecurity experts, and intelligence analysts. The bill also defunds Visible Intermodal Prevention and Response teams which are essential to securing mass transit and other transportation modes, and it defunds basic collective bargaining rights for TSA employees. Simply put, this Republican bill would seriously undermine TSA's security mission. Thankfully, an alternative approach exists. Last month, Ranking Member Thompson introduced the Fund the TSA Act, which would end the diversion of passenger security fees and raise fees by $2 per trip to provide TSA with the resources it desperately needs. This bill would allow TSA to invest in its work force, process increasing number of travelers, purchase additional computer tomography machines for screening carry-on baggages, and fund critical airport law enforcement and canine programs. I'm a proud cosponsor of this bill, and I encourage my Republican colleagues to give it serious consideration as a solution to TSA's funding challenges. The fact is we have been underfunding TSA for two decades. It is time that we rightsize TSA's budget, support its work force, and set the agency up to address rising passenger volumes over the coming years. Mr. Administrator, I look forward to hearing your thoughts and how Congress can support the agency's needs. Mr. Chairman, I yield back. [The statement of Ranking Member Thanedar follows:] Statement of Ranking Member Shri Thanedar June 22, 2023 We stand at a critical junction for the Transportation Security Administration as we in Congress consider whether to invest the resources necessary to ensure the continued security of our transportation systems. Last December, Democrats in Congress provided significant resources in the Omnibus funding bill to increase pay and collective bargaining rights for TSA workers, finally putting them on equal footing with other Federal employees. Increased pay will begin to hit TSA employees' paychecks next month, and TSA is already seeing major, positive impacts. Drastically more people are applying to TSA positions, and trends indicate that TSA's attrition rates--which have been unsustainably high--may drop as much as 50 percent under the new pay structure. Lower attrition will not only allow the agency to save millions on hiring and training employees who leave months later, but will also improve security as TSA develops a highly-skilled, experienced workforce. Going forward, we must provide TSA with the funding to continue these critical workforce initiatives for a full year in 2024. Yesterday, the House Appropriations Committee marked up the bill put forward by the Republican Majority to fund the Department of Homeland Security for 2024. I was glad to see that Republicans are now following Democrats' lead to provide pay increases for Transportation Security Officers, or TSOs. Unfortunately, the bill prohibits increased pay for any TSA employee who is not a TSO. This group of employees is critical to TSA's security mission and includes Federal Air Marshals, canine handlers, bomb technicians, cybersecurity experts, and intelligence analysts. The bill also defunds Visible Intermodal Prevention and Response teams, which are essential to securing mass transit and other transportation modes, and it defunds basic collective bargaining rights for TSA employees. Simply put, this Republican bill would seriously undermine TSA's security mission. Thankfully, an alternative approach exists. Last month, Ranking Member Thompson introduced the ``Fund the TSA Act,'' which would end the diversion of passenger security fees and raise fees by $2 per trip to provide TSA with the resources it desperately needs. This bill would allow TSA to invest in its workforce, process increasing numbers of travelers, purchase additional Computed Tomography machines for screening carry-on baggage, and fund critical airport law enforcement and canine programs. I am a proud cosponsor of this bill, and I encourage my Republican colleagues to give it serious consideration as a solution to TSA's funding challenges. The fact is, we have been underfunding TSA for two decades. It is time that we right-size TSA's budget, support its workforce, and set the agency up to address rising passenger volumes over the coming years. Mr. Administrator, I look forward to hearing your thoughts on how Congress can support the agency's needs. Mr. Gimenez. Thank you, Ranking Member Thanedar. Other Members of the committee are reminded that opening statements may be submitted for the record. Again, I am pleased to have a distinguished witness before us today on this critical topic. I ask that our witness please rise and raise his right hand. [Witness sworn.] Thank you. Please be seated. Let the record reflect that the witness has answered in the affirmative. I would now like to formally introduce our witness. Mr. David Pekoske is currently serving his second term as the seventh administrator of the Transportation Security Administration. In this capacity, he leads a work force of over 60,000 employees, and is responsible for security operations at nearly 440 airports throughout the United States. Under his leadership, TSA has improved transportation security through close partnerships and alliances, a culture of innovation, and the development of a dedicated work force. Prior to his tenure at TSA, he served as the 26th Vice Commandant of the U.S. Coast Guard, culminating a Coast Guard career that included extensive operational and command experience. I thank the administrator for being here today. I now recognize Administrator Pekoske for 5 minutes to summarize his opening statement. STATEMENT OF THE HONORABLE DAVID PEKOSKE, ADMINISTRATOR, TRANSPORTATION SECURITY ADMINISTRATION, U.S. DEPARTMENT OF HOMELAND SECURITY Mr. Pekoske. Thank you. Good afternoon, Chairman Gimenez, Ranking Member Thompson, Ranking Member Thanedar, distinguished Members of the subcommittee. I am grateful for the opportunity to testify on the President's fiscal year 2024 budget request for TSA. I look forward to discussing how the budget request supports our mission of securing the Nation's transportation system, while ensuring the freedom of movement of people and cargo. Our operations are conducted by an incredible team of TSA employees, both public facing and behind the scenes, who work tirelessly to keep us safe, as well as the enormous security contributions of the owners and operators of transportation infrastructure. So far in fiscal year 2023, 550 million travelers have been screened at our checkpoints at over 430 airports across the country. Our highest passenger screening day since March 2020 was just 6 days ago, last Friday, when we screened approximately 2.79 million passengers. We project that we'll screen over a quarter of a billion passengers and crew during the busy summer travel season. With the growth in air travel, we will need the additional staff requested in the fiscal year 2024 budget to continue to meet our passenger throughput standards. Thanks to the extraordinary effort of our airport teams, we meet those standards over 95 percent of the time Nation-wide. Of note, TSA PreCheck enrollments just passed the 16 million-member mark, with some days seeing almost 20,000 new TSA PreCheck enrollments. This year, TSA is on pace to provide assistance to over 60,000 passengers who may need additional help in our screening process. This program, called TSA Cares, is certainly a benefit for those asking for assistance, and provides additional efficiency for all travelers in the queue. I am very grateful for the funding we received in last December's fiscal 2023 Omnibus Appropriations Act that places TSA employees on the same pay scale as most other Federal Government employees. This is essential to our long-term success. Annualizing the funding to support this important action is my No. 1 budget priority for fiscal year 2024. We are already seeing significant dividends from the 2023 budget. First off, as many of you have already mentioned, overall attrition rates are down, and they're way down. There's already been a 53 percent increase in applications to TSA positions so far this calendar year. I appreciate that in yesterday's markup of our fiscal year 2024 appropriation the House Appropriations Committee provided partial funding to annualize TSA's pay plan for our Transportation Security Officers. However, I am very concerned that the bill does not continue the pay for all TSA employees into the next year. TSA is an operating agency, and all members contribute to our mission success. Here are some examples of employees whose pay would not be funded and, therefore, their pay reduced in the House bill. You'll see most have a direct contribution to our mission, and the remainder are critical to supporting our front line. Federal Air Marshals, who as Federal law enforcement officers, provide in-flight security, augment law enforcement presence in airports and surface transportation systems; canine handlers whose explosive detection and mobile screening capabilities are a key component of TSA's layered risk-based approach to securing the aviation sector. They are essential to meeting wait-time standards at our major airports. Explosives experts are former members of a police bomb squad or military EOD teams that provide advanced IED training and awareness, as well as alarm resolution in our checkpoints. TSA vetting experts work 24/7 to review and vet passenger reservation and aviation worker data, while processing nearly 3 million passenger records a day, and vet a credentialed population of nearly 30 million people. Coordination Center Officers at airports serve as the nerve center for incident management reporting and are tied in real time with TSA's national operation centers. Aviation regulatory inspectors ensure compliance with and the security of domestic and international aviation, while assessing security at international last-point-of-departure airports. Our surface and cyber inspectors are similarly not included. Headquarters operations, which consists of only 4 percent of our work force, a lean operation, in my opinion, provide critical operational policy and logistic support to the entire agency. These are examples of the many dedicated TSA security professionals who would be left out of the House bill were it to pass. TSA cannot be successful without a unified, vigilant, engaged, properly staffed, and fairly compensated work force. I appreciate the challenge of identifying resources needed to continue ensuring transportation security. The current 9/11 security fees generate over $4 billion in revenue to the Federal Government. However, a portion of this fee revenue has been diverted since fiscal year 2014 to deficit reduction. It does not all go to aviation security, despite the fee's name. Last year alone, $1.6 billion of the 9/11 security fees paid by passengers were deposited into the Treasury, not used as an offset to TSA's funding needs as originally intended. The President submitted a legislative proposal to end this fee diversion last year and again this year. If enacted, it would provide $1.6 billion in additional offsetting collections to TSA's budget, more than enough to offset the additional costs of fair pay and to support our technology investments. This is an authorization and an appropriation issue. I ask for your support to end the fee diversion and put the funds to their intended purpose, as the President has requested. Thank you for the opportunity to testify before you today. I look forward to your questions and to working with all of you over the coming years to ensure TSA has the authorities and the resources needed to meet our mission. Thank you, sir. [The prepared statement of Mr. Pekoske follows:] Prepared Statement of David P. Pekoske June 22, 2023 Good afternoon Chairman Gimenez, Ranking Member Thanedar, and distinguished Members of the subcommittee. Thank you for inviting me to testify on the President's fiscal year 2024 President's budget request, which includes a $10.4 billion request for the Transportation Security Administration (TSA). I am honored to be here and am grateful for the long-standing and constructive partnership TSA enjoys with this subcommittee and all the support you have provided over the years. I look forward to working with the new Members of the committee, including Ranking Member Thanedar, Representative LaLota, Representative Lee, and Representative Garcia. First and foremost, I would like to thank the committee and Congress for your continued support of our workforce most notably through approving the increased pay plan which was included in the fiscal year 2023 Omnibus Appropriations Act. The President's fiscal year 2024 budget request includes the annualization of the pay plan Congress approved in fiscal year 2023. This pay plan matches the minimum compensation levels with the General Schedule (GS) pay scale and makes the pay for the TSA workforce comparable to every other Federal employee. I want to be clear that pay initiatives must include all TSA employees. Oftentimes many of our TSA employees who are not customer-facing are overlooked. We must acknowledge and recognize their impact and contributions to our overall mission. Every link in the chain of our TSA workforce is equal and contributes directly to the security of our transportation systems. All are due the respect, treatment, and pay that they have earned. The comparable pay plan was not only the right thing to do by our work force, but it is already paying dividends in ways that will have a measurable impact on mission performance. Since the December 2022 announcement that Congress included funding for comparable pay in the 2023 Omnibus, we have already seen the following indicators of success:Attrition trends indicate that TSA may realize as much as a 40-50 percent reduction in attrition moving forward. When you factor the estimated cost of over $12,000 to on-board new staff, this will result in a significant cost savings for the Government. TSA has gone from losing an average of 381 officers per 2- week pay period at the beginning of the fiscal year down to losing an average of 202 officers per pay period over the last 5 pay periods. At almost half the losses, if this trend continues, we may need to hire as many as 5,000 fewer officers next year. At the same time that we are reducing attrition, we are continuing to hire and are achieving net gains in overall officer head count. The pay period ending April 22, 2023 was our fifth pay period in a row in which we saw our total officer head count increase, and over the past 5 pay periods we have averaged a net increase of 212 officers per pay period. Additionally, I would also want to take this opportunity to acknowledge the superior efforts of the entire TSA workforce, convey what they have accomplished, and explain our future goals and objectives. So far in fiscal year 2023: TSA has screened 550 million travelers, an average of more than 2.2 million passengers per day, with 99.2 percent of passengers waiting less than 30 minutes at airport security checkpoints, and 98.8 percent of TSA PreCheck passengers waiting less than 10 minutes. We need to maintain our wait time standards while ensuring security in light of increasing passenger volumes. As of June 7, 2023, TSA has deployed 302 CAT-1 systems, upgraded 115 CAT-1 systems to CAT-2 capability, and deployed 217 new CT systems, which significantly improve security effectiveness and efficiency while reducing physical contact. TSA has begun the process of enrolling 10 new airlines as well as nearly 3 million more individuals, and achieved the milestone of exceeding 16 million enrolled members in the TSA PreCheck Program. We are also working to on-board additional enrollment vendors to expand enrollment options: This expansion of enrollment providers will increase the network of locations where applicants may go to complete their membership in TSA PreCheck. TSA PreCheck programs provide more efficient screening and a better checkpoint experience, while also maintaining the required level of security for passengers by allowing TSA to allocate resources to areas of the greatest risk. TSA also vets over 30 million individuals across transportation worker populations on a daily basis. TSA's vetting of transportation workers comprises intelligence-related checks and may also include checks for lawful presence and/ or criminal history record information. We've provided assistance to 42,277 passengers with disabilities/medical conditions and/or required special assistance via the TSA Cares program. We are on pace to provide assistance to 63,416 passengers in all of fiscal year 2023, which would represent a 39 percent increase over fiscal year 2022 (45,502). Passengers indicated autism spectrum as the medical condition that they need assistance with the most in fiscal year 2023 (9,424 or 22 percent of all requests). It remained the top reason for special assistance for the fifth consecutive fiscal year. Our screening workforce has prevented more than 4,500 firearms from being carried into the secure area of airports or airplane passenger cabins, after a record-setting year in 2022. This is a testament to the security proficiency of our Transportation Security Officers. We have trained 4,120 flight crew members in Crew Member Self-Defense training to address increasing trends in unruly passengers, and partnered with the Federal Aviation Administration to rescind TSA PreCheck eligibility for passengers who are disruptive aboard flights or during security screening. In especially egregious situations, TSA has taken action to limit individuals from flying in the future if they are assessed to pose a threat to aviation security. The Federal Air Marshal Service (FAMS) covered aviation security missions involving identified high-risk travelers, served on Federal task forces with our law enforcement partner agencies to investigate transportation terrorism and criminal acts, and continued to lead TSA's Insider Threat program. FAMS also provided security enhancements to all transportation modes. The Visible Intermodal Prevention and Response (VIPR) Teams completed over 4,800 missions in aviation and surface transportation modes. We expanded the Transportation Security Officer (TSO) new hire training from 2 to 3 weeks, providing additional instruction on image interpretation, TSA culture, enhancing the passenger experience, and improved focus and concentration. TSA trained over 5,222 TSO new hires as of June 7, 2023, and this month TSA officially opened TSA Academy West adjacent to Harry Reid International Airport in Las Vegas, Nevada. TSA established the first performance-based, outcome-focused cybersecurity-related Security Directives and Security Program Amendments that require mandatory incident reporting and the adoption of mitigation measures to the most critical owners and operators of transportation infrastructure in pipelines, rail, and aviation. TSA is committed to enhancing and sustaining industry's resilience to cybersecurity attacks. TSA is working on a rule making that will permanently codify critical cybersecurity requirements for pipeline and rail modes. TSA published Information Circulars to Transportation Systems Sector stakeholders with recommended actions to reduce vulnerabilities associated with cybersecurity-related threats. We also published the Innovation Doctrine--the first of its kind in Government, which lays out agreed-upon current best practices and establishes mechanisms like Local Innovation for TSA (LIFT) Cells across the country to foster a culture of innovation, provide resources and pathways to solve local-level problems, and expand the innovation ecosystem around transportation security. It also creates an Innovation Pipeline, a disciplined, repeatable, and scalable process for innovation across TSA to out-innovate those that threaten the traveling public, and leverages the TSA Innovation Task Force's expertise in the evaluation and demonstration of promising technologies. We continued several programs and initiatives to recruit and retain TSOs, including: A performance-based rewards program called the Model Officer Recognition that provided 19,478 monetary awards or pay increases to top-performing TSOs in fiscal year 2022; Authorized TSO retention incentives at 144 airports, benefiting more than 10,000 employees Nation-wide. Although these are still needed in certain locations moving forward, the pay equity funded by the fiscal year 2023 enactment will dramatically reduce the need for these incentives. TSA and our partners expanded digital identity technologies that improve security and enhance the customer experience, including testing TSA PreCheck touchless identity solutions, collaborating with Apple and other private-sector partners to incorporate mobile driver's licenses (mDL) into security checkpoint operations, and publishing an Identity Management Roadmap which lays out a comprehensive end-to-end strategy for identity verification at TSA. In coordination with DHS Science &Technology, TSA established an Unmanned Aircraft System (UAS) Test Bed Program at Los Angeles International Airport--in addition to the previously-established one at Miami International Airport--to test and evaluate detection, tracking, and identification technology for UAS that enter restricted air space. TSA continues to collect data on performance of these various technologies to share with industry and Government partners. TSA's vision is to remain agile, embodied by a professional workforce that engages its partners and the American people to address current and future challenges and threats to the homeland. To that end, within the first year of my term as administrator, I issued the ``TSA Strategy'' and established three strategic priorities to guide the agency's workforce through its 25th anniversary: (1) Improve Security and Safeguard the Nation's Transportation System; (2) Accelerate Action; and (3) Commit to Our People. I have twice published Administrator's Intent documents delineating and updating the short- and medium-term goals and objectives to achieve those strategic priorities. At the end of this month, I expect to publish the third iteration of the Administrator's Intent, which will focus on the 20 most critical cross-cutting issues that require collaboration across the entire agency with senior executive accountability. We have been in close consultation with your staff and our stakeholders regarding the issues that should be included in this document. The Administrator's Intent 3.0 is aligned with the Department of Homeland Security's priorities as well as national strategies and directives including the National Security Strategy, the National Cybersecurity Strategy, and the Executive Order on Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government. We have also strengthened our partnerships across the spectrum-- from private industry, to foreign partners and international organizations, advisory committees, academia, State and local governments, and our Federal partners--in order to increase collaboration, security, information sharing, and maximizing the customer experience in the new travel environment while minimizing negative impacts on travelers and commerce. Securing and safeguarding the Nation's transportation system requires innovative solutions to address cybersecurity threats and risks associated with the continued integration of advanced electronic and networked systems. The fiscal year 2024 President's budget includes an increase of $10.4 million for cybersecurity staffing, as well as the development and implementation of enhanced cybersecurity-related measures to improve cyber resiliency across the U.S. Transportation Systems Sector. Across the transportation sector, TSA continues to help partners build cyber resilience and improve incident response, focusing on the pipeline, rail, and aviation sub-sectors. With those stakeholders, TSA hosts a variety of planning meetings, intelligence briefings, and tabletop exercises to ensure partners are aware and prepared to respond to emerging issues. I have personally visited pipelines and other critical infrastructure operators to discuss the evolving cybersecurity threat, and to understand the challenges and successes of implementing the current security directives and program amendments. This year, as required by Congress, TSA will deliver for the first time an unconstrained Capital Investment Plan that describes an ideal future state in which TSA is able to mitigate more risk to the transportation sector with additional resources. It is imperative that TSA continues to invest in, acquire, and field new technologies to strengthen transportation security. The transportation sector will remain a top target for malicious actors including international and domestic terrorists due to the prevalence of soft targets within the sector, the public accessibility of many transportation modes, and the importance of transportation infrastructure to the Nation. The agency carefully monitors this evolving threat environment and the need to strategically manage risks. Risk-based decision making is inherent to the TSA mission of protecting the Nation's transportation systems to ensure the freedom of movement for people and commerce. The challenges and risks TSA encounters will foreseeably become more complex, and the agency needs to position itself to be both more strategic in responding to risks and in developing solutions. A critical dependency in risk mitigation is sufficient funding that would allow TSA to continue to evolve transportation security in high-risk areas. In conjunction with the fiscal year 2024 President's budget, the administration offers two proposals to increase availability of funding to resource TSA's strategic priorities and help TSA address emerging threats. First, it includes a legislative proposal to end the diversion of passenger fee collections for deficit reduction and make $1.6 billion of the fees available for their intended purpose of offsetting TSA's Operations and Support appropriation for aviation security. Second, the budget includes a legislative proposal to transition access control at exit lanes to airport authorities and commercial airports under Federal regulatory authorities, which will result in a projected savings of $111.0 million. If approved, TSA will work with the remaining airports that do not currently provide their own exit lane security to integrate exit lane security into their perimeter security plans and assess those plans regularly. The proposal will enable TSA to better focus its resources on screening functions and risk-based security measures. TSA's level of success is influenced by the help of Congress as well as our professional, vigilant, and engaged workforce. That is why ``Commit to Our People'' is one of our three strategic priorities. The initial funding Congress provided in fiscal year 2023 to TSA allows for that continued commitment. The fiscal year 2024 President's budget includes $1.4 billion to fully support the TSA workforce pay initiatives started in fiscal year 2023. The strategic priority of ``Commit to Our People'' also entails ensuring that we provide our workforce with the necessary advanced technology to be successful. Today's evolving threats require a dynamic and responsive TSA. Access to greater technology enables our passenger screening workforce to assess potential threats quickly and efficiently and also supports a more seamless experience for the traveler. To that end, the fiscal year 2024 President's budget includes $70.4 million to procure additional systems within the Checkpoint Property Screening System (CPSS) (i.e. Computed Tomography (CT)), and $11.0 million for Credential Authentication Technology (CAT) programs. These systems will address capability gaps, and detect new and evolving threats to civil aviation in current property screening technology reliably and efficiently, while also improving the customer experience. It is imperative that we equip our front-line workforce with the necessary tools to combat persistent threats. TSA needs a total of 3,585 CAT and 2,263 CT machines to reach full operational capability (FOC). Currently, CPSS procurements are an estimated 38 percent of FOC, which puts deployments at approximately 30 percent for CPSS and 57 percent for CAT. Based on past, present, and current projected funding, TSA will meet FOC for CAT machines and CPSS in fiscal year 2049 and fiscal year 2042, respectively. Full and dedicated funding for CPSS and CAT is imperative to our Nation's security. Furthermore, there are a number of investments in Operation and Support that require sustained funding to ensure the transportation sector stays secure. Some of these investments include: $251.0 million to provide the TSA workforce a 5.2 percent pay raise. $39.0 million for Transportation Security Equipment Maintenance to fund anticipated maintenance costs of TSA's checkpoint and checked baggage screening technologies based on current contractual requirements. $19.0 million and 24 positions for the implementation and expansion of the REAL ID Program. $11.3 million for maintenance, technical support, and engineering contracts for Credential Authentication Technology. $10.0 million to properly support the National Deployment Office Travel increases, which will further support the deployment of officers to airports in need of additional staffing. $4.5 million and 45 positions to expand and enhance dedicated pipeline security assessment teams to conduct inspections and assessments on the Surface Transportation System. $3.8 million to enhance TSA's Insider Threat Program. $2.7 million and 6 positions to support Executive Order 14058 to enhance Customer Experience Strategic initiatives. As you know, TSA was established by the Aviation and Transportation Security Act in the wake of the September 11 attacks and was given the urgent task of protecting our Nation's transportation systems. Since that day, we have remained steadfast in our commitment to provide the highest level of security across all modes of transportation and work with our partners to stay ahead of evolving threats. In the years since 9/11, and specifically over the past fiscal year, TSA has not only had to address ever-present physical threats to aviation, but also dynamic and emerging cybersecurity threats to our Nation's aviation, rail, as well as hazardous liquid and natural gas pipeline infrastructure. TSA works closely with the transportation industry to provide agile and responsive security across all modes of transportation through passenger and cargo screening, vetting and credentialing personnel in critical transportation sectors, law enforcement, regulatory compliance, and international cooperation. Today, within the aviation network, TSA is responsible for the security of more than 430 Federalized airports, with screening services forecasted this summer for more than 22,000 domestic flights (at pre- pandemic levels) and nearly 2,300 outbound international flights per day. With travel volume rebounding, TSA routinely screens more than 2.2 million passengers, 5 million carry-on bags and 1.4 million pieces of checked baggage daily for explosives and other dangerous items, and in many locations across the Nation. TSA expects passenger volume to eventually exceed our pre-pandemic fiscal year 2019 levels, which averaged up to 2.3 million per day. The fiscal year 2024 President's budget includes $197.1 million to enable TSA to continue to recruit and retain a workforce able to meet increasing demands of passenger travel volume and maintaining security effectiveness. In addition to these core security functions, we also ensure regulatory compliance in aviation through the work of more than 1,285 aviation, cargo, and surface transportation security inspectors. In the surface realm, TSA works closely with transportation system owners and operators to protect the critical surface transportation systems that connect cities, manufacturers, and retailers and power our economy through more than 4 million miles of roadways; nearly 140,000 miles of railroad track; more than 470 tunnels; and over 3.3 million miles of pipeline. TSA's security inspectors conduct approximately 8,000 surface inspections annually in pursuing a risk-based approach for securing a large and complex network of transportation systems and critical infrastructure. Since TSA's creation, the modes and methods of terrorist attacks have become more decentralized and opportunistic, and aviation and other transport hubs remain high-value targets. Threats to aviation and surface transportation are persistent and constantly-evolving. To meet these challenges, we must continue to be responsive, innovate, rapidly deploy new solutions, and maximize the impact of our resources. The fiscal year 2024 President's budget aligns with TSA's strategy to improve security and safeguard the Nation's transportation system, accelerate action, and reinforce TSA's commitment to advancing its strategy. Thanks to Congress' support for TSA through the fiscal year 2023 enactment, the fiscal year 2024 President's budget honors commitments to our workforce by providing appropriate compensation and other benefits while addressing capability gaps to ensure that the Nation's transportation security remains the safest in the world. Securing our Nation's transportation system is a complex task that requires robust partnerships and a well-trained, dedicated workforce. Funding in the fiscal year 2024 President's budget will have a positive impact on all TSA employees--from Transportation Security Officers, Federal Air Marshals, inspectors, canine handlers, explosive specialists, intelligence and vetting analysts, and management to administrative and professional employees--as well as on transportation security and the passenger experience. To achieve the priorities reflected within the fiscal year 2024 President's budget, we will continue to engage with industry and stakeholders, invest resources in our employees and technology, and encourage the public to be part of the solution. Finally, through constructive oversight and dialog, we seek to continue to partner with Congress as we work to secure all modes of transportation for the public. Chairman Gimenez, Ranking Member Thanedar, and Members of the subcommittee, thank you for the opportunity to testify before you today. I strongly believe that the TSA priorities outlined in the fiscal year 2024 President's budget are not only necessary but timely and vital to our economy. As always, we will be very responsive to addressing any questions that you might have throughout this budget process and I look forward to this discussion and your questions. Thank you. Mr. Gimenez. Thank you, Administrator. Members will be recognized by order of seniority for their 5 minutes of questioning. I now recognize myself for 5 minutes of questioning. Administrator, you said that, if I heard you right, that some people have their pay reduced? Mr. Pekoske. Yes, sir. We start to pay--the fiscal year 2023 omnibus appropriation authorized pay for every single TSA employee. All we're asking for and all of the Congress provided was pay at the same pay scale as every other Federal employee just about. This pay begins on the 2nd of July. People will see it in their direct deposit accounts on the 24th of July. So that--that pay is already rolling and moving out. We provided letters to every single employee in the agency in April that showed their current pay and their pay under the amounts appropriated by the Congress in fiscal year 2023. We did that because we wanted them to be aware of what the exact calculation is. We also wanted to make sure that, if there were any mistakes or any misunderstandings, we corrected them back in April rather than in July. So the work force has been aware since the bill passed in December, and certainly, on a personal basis, the personal impact to them by individual letter from us and then with their direct deposits beginning in--you know, toward the end of July. Mr. Gimenez. Are you saying that in fiscal year 2024, some people will get their pay reduced? Mr. Pekoske. Yes, sir. I would add to that that, you know-- -- Mr. Gimenez. I mean, actually reduced, not in comparison to somebody else. It will be reduced. Mr. Pekoske. It will be reduced, yes, sir. It will be reduced to what it is today. So we---- Mr. Gimenez. They'll get--so they'll get a pay increase for how long? Mr. Pekoske. Three months. Mr. Gimenez. Three months. Then it will go back---- Mr. Pekoske. Yes, sir. Mr. Gimenez [continuing]. Down. Mr. Pekoske. Right. Mr. Gimenez. Fair enough. I'd like to get some--I'd like to get that and see the graph of what that impact would be, please. Mr. Pekoske. Sure. Mr. Gimenez. I don't think we were aware of that. Mr. Pekoske. Yes, sir. Mr. Gimenez. All right. Moving on. Your CT scan--your CT machines, would the increase in funding that was of $30 million, and if we assume that that's going to be continuing, you had--originally you had a--a term--a completion date of 2042. With $30 million more per year, et cetera, when is that completion right now? Mr. Pekoske. I believe the completion date, sir, was 2042. That would probably close it up by a year or two. But we're ready. We have the ability now, with the contracts we already have in place, we already know what technology we want to buy. We've tested it. We've put it in operational use. We can spend up to $300 million just on CT machines. Mr. Gimenez. Three hundred million right now? Mr. Pekoske. Yes, sir. Mr. Gimenez. OK. Mr. Pekoske. This would be $300 million not to put machines in warehouses but to put machines in airports. Mr. Gimenez. Fair enough. Are you--are you working with an outside agency, like Clear, to try to offset some of the operational needs that you may have at the airports? Mr. Pekoske. We work with many, many outside entities. Really that's the strength of our system. We work very closely with the airports, with carriers, other providers. We work very cooperatively with that. I mean, our goal is to make sure that, for me, my--my North Star is to ensure that we continue to improve security and that everybody in the ecosystem of aviation security and surface security is contributing to that effort. Mr. Gimenez. Move on to REAL ID and your time table for REAL ID. What is your time table for REAL ID now? Mr. Pekoske. Sir, the Secretary extended the deadline for REAL ID until May 2024, so--or 2025. I'm sorry. So it's out a couple of years. We're working very hard to make sure that we hit that deadline date. We work very closely with the States, with the associations that coordinate State activity, with departments of motor vehicles in trying to put a system in place where we provide a gradual level of notification to travelers. For example, let's say for argument's sake, 5 or 6 months out, if somebody comes to our checkpoint, does not have a REAL ID-compliant driver's license, we orally advise them that, hey, if they don't have a passport, that driver's license cannot be used as their sole identification beginning on the deadline date. So to, you know, really try get a more personal focus on individuals who have not yet received their REAL ID driver's license. Mr. Gimenez. I think it's going to be a problem. I know that my license doesn't expire until 2026. Mr. Pekoske. Uh-huh. Mr. Gimenez. I don't believe it's REAL ID. The other thing that I--you know, I do have--so folks that have, say, Global Entry and they have an ID card for Global Entry, I understand that that's not--you can't use that for entry. Or can you now? Mr. Pekoske. We have on our website, Chairman, a list of acceptable forms of identification. Most travelers would likely use a passport for a--as a form of identification, which is an acceptable form of ID. If a passenger presents themself at the checkpoint without an acceptable form of ID, we have an alternate resolution process that is time-consuming. Our concern is that if we have a lot of people on the deadline date in 2025, it will slow down the process for everyone. That's why we want to get ahead of it as much as we can. We're working very closely with the State DMVs to assess the adoption of REAL ID within their new driver's license issuances, and trying to keep the messaging out there as strongly as we can. Mr. Gimenez. Fair enough. My time has expired. I now recognize the Ranking--Ranking Member Thompson. Do you have any questions? Mr. Thompson. Thank you very much, Mr. Chairman. Mr. Pekoske, as you know, I recently introduced the Fund the TSA Act, which would provide funding for salary increases and expand labor rights for TSA workers, additional computer tomography machines, as well as critical airport support for law enforcement and canine program. This bill would raise passenger security fees by $2 per one-way ticket, end the diversion of fees away from TSA to the general treasury, which has cost us $1.4 billion annually, and go toward our workers and other improvements. Although no one likes increase in fees, in order for us to really help our workers and maintain this progress that we're talking about, would you support advancing the Fund the TSA Act to secure the funding needed for fair pay and labor rights for TSA workers and other TSA priorities? Mr. Pekoske. Mr. Ranking Member, everything in the TS--the Fund the TSA Act are things that we desperately need as an agency. I think everybody can understand if--if a person's receiving a certain level of pay in July and August and September, and then, let's say for argument's sake, the budget passes at the beginning of the fiscal year and that pay goes down, that will have an incredibly negative impact on the work force of TSA. Additionally, as the administrator, I would be faced with the challenge of managing two different pay scales within the same agency. One thing that I think a lot of people ought to consider as well is that we have many, many Transportation Security Officers that, fortunately for the agency, advance to different positions. They bring their screening skills, their passenger interaction skills to other positions within the agency. If you don't provide the funding increase across the board, there's going to be less and less of a financial benefit for them to do that, other than career advancement, which many will still do for reasons that are, you know, that are for them a level of professional development. The other thing that I would highlight is you can imagine how hard it is for us in our headquarters positions. If somebody is doing the very same job in TSA and they could get so much more money working for another Federal agency, it makes it hard to retain that talent in TSA, particularly in places like Washington, DC, where it's very easy to switch employers. So, you know, I look at the immediate impact on people, and I also look on the long-term impact on the agency. Other thing, sir, that I would add is, you know, I have worked--and you and I have talked about this many, many times over the last 5.5 years--of trying to do whatever we can to improve the workplace environment within TSA. I've tried everything, as you know, within my authority and within the funds that we could bring together to be able to put resources to the issue. The No. 1 thing that affects workplace morale in TSA is pay. But the No. 2 thing is the relationships and the manner in which people are led sometimes within the agency. I think that, you know, we've tried everything. Having a full collective bargaining agreement is critically important for us to take that next step and make sure that we have a fulsome way that people can provide input into the things we do, they can provide an assessment of proposals that we make in a collective bargaining environment, and also have appeal rights like every other employee has. So I think those are critical. Mr. Thompson. Well, thank you much. I think it would be heartless on our part to give people a raise and then take it back. I just think that that's not---- Mr. Pekoske. Right. Mr. Thompson [continuing]. Who we are as a government. I've never known it to happen in any other agency. So hopefully we'll work something out so our loyal employees won't--won't be caught in the lurch. As you know, Clear, as the Chairman talked about earlier, operates a passenger convenient--convenience program that allow their members to cut in the front of the TSA security checkpoint. But we also are aware of some problems that have come up over the last several months. So can you commit to closing any security gaps that you've identified in this situation? Mr. Pekoske. Yes, sir. I--I'm fully committed to that. Further, in my view, any security gap that TSA identifies, to me, that's my job is to make sure that we identify those gaps and close them as quickly as we can. Sometimes it requires resourcing, and that's when we come back to the Congress. Sometimes it might require a little bit of a different authorization, but we need to close whatever security gaps we have. Sir, the strategy that we put out in 2018, the very first thing in the strategy in terms of a strategic goal is to improve security, because our adversaries get better and better all the time. We have to stay well ahead of them. Mr. Thompson. Thank you. I yield back, Mr. Chair. Mr. Gimenez. The gentleman's time has expired. I now recognize the gentleman from Louisiana, Mr. Higgins. Mr. Higgins. Thank you, Mr. Chairman. Thank you, Mr. Pekoske, for being with us today. It's good to see you again. Mr. Pekoske. Yes, sir. Mr. Higgins. Your office is always accessible and works very well whenever we reach out. So thank you for your leadership. So discussing budget, we have obviously difficult decisions to make in Congress to protect the people's treasure. We all work at the pleasure of the citizenry that we serve, and we must be--we must be focused on good stewardship of the people's treasure. So we're in the same boat there. So on the one hand, I recognize that our Nation carries crippling debt. This must be addressed, and very few of us here would argue that the size and scope of the United States Federal Government was too small in 2022. So we have to make difficult budget decisions. We're not going to do it at the cost of an American citizen's pay that has been adjusted appropriately to be relatively equivalent to their colleagues in a similar position in another division of Government. So it's a moment when we stand united, I believe, on both sides of the aisle to find a way forward there to protect your TSA workers' pay increase. That being said, I'm going to ask you about a couple of areas of your budget and ask you to explain to the American people how you deal with that. Your budget request, TSA's request included two legislative proposals that include terminating the deficit reduction contribution of the aviation passenger security fee and eliminating exit lane staffing by TSO. So the aviation passenger security fee would return $1.56 billion annually to TSA currently. That revenue from the passenger fee, which is about $11.20 for a roundtrip ticket---- Mr. Pekoske. Yes, sir. Mr. Higgins [continuing]. That money is required by statute to go back to the Treasury. We want to return that to TSA. So if we got that done, how would that impact your budget request regarding protecting your people's pay? Mr. Pekoske. Yes, sir. The number, correct, $1.56 billion in fiscal 2024, that would pay for our pay increase. So it's directly relevant. Mr. Higgins. OK. That was an honest answer. My goodness. Thank you for a straight, honest answer. The objective would be to move forward with the TSA services that are provided to the people, crucial for our--the safety of travel and--and prepare for the coming years. I mean, you're dealing with two--I think 2.2 million people a day. It's a stunning number when you look at it. What you guys are accomplishing is amazing. You're looking at over 3 million during the travel season this summer, I believe you stated that? Mr. Pekoske. Yes, sir. We should be very close to 3 million. If we don't see it this summer, we'll likely see it-- -- Mr. Higgins. Over 3 million a day. Mr. Pekoske. Uh-huh. Mr. Higgins. So as we look over the next decade, which is the way things are done with budgets up here, we look at 10 years of expense, what kind of volume, just from your perspective, could we look at per day in 5 or 10 years at TSA? Mr. Pekoske. Yes, sir. Mr. Higgins, thanks very much for your comments. Generally, a rule of thumb is that passenger volume growth in aviation increases by about 4 percent compounded year over year. Mr. Higgins. Four percent per year? Mr. Pekoske. Year over year, yes, sir. That's what---- Mr. Higgins. That's what you're seeing historically for growth? Mr. Pekoske. Right. Mr. Higgins. OK. Well, we can extrapolate those numbers and look at significant growth. I mean---- Mr. Pekoske. Uh-huh. Mr. Higgins [continuing]. It's increasing by roughly half what you're doing now. So you'd be looking at 4 million people a day during your busy season within the next decade. Mr. Pekoske. I think that's fair, yes, sir. Mr. Higgins. Yes, sir. Well, I must say that your office has been excellent to work with. Mr. Pekoske. Thank you. Mr. Higgins. We have challenges for budget decisions to make. I feel quite confident that we'll be able to maintain and grow the capabilities of TSA and protect your workers' pay raise, and at the same time address the seemingly never-ending growth of the size and scope and expense of the Federal Government. It would be more efficient and take care of our people. Mr. Chairman, my time has expired, and I yield. Mr. Gimenez. The gentleman's time has expired. I now recognize the Ranking Member of the subcommittee, Mr. Thanedar. Mr. Thanedar. Thank you, Chairman. Mr. Administrator, I'm really concerned about the potential impact to TSA's mission if Congress fails to provide funding for increased pay, collective bargaining rights, and necessary staffing levels. I'm glad there seems to be some agreement on the need to maintain increased pay for front-line officers, but we must make sure that any continuing resolution includes an anomaly to continue that funding. I have several questions and I'll ask them all and then give you some time to respond. But, Mr. Administrator, what would be some of the impacts to TSA if Congress were to fail to fund TSO pay increases in 2024? Mr. Administrator, I'm also concerned about Republicans' efforts to limit pay reforms to TSOs and cut the pay for Federal Air Marshals, canine handlers, and other critical employees. How important are those employees to TSA's mission, and what would be some of the impacts of cutting their pay? Let me continue for another minute or so. I'm also concerned about cuts proposed by Republicans to defund TSA's Visible Intermodal Prevention and Response program. The VIPR program is essential to TSA's efforts to support local law enforcement and secure mass transit and other modes of transportation across the country. TSA's surface transportation security efforts are already underresourced, even though far more people ride the subway each day than fly on a plane. Mr. Administrator, how critical are TSA's VIPR teams in securing mass transit? Mr. Pekoske. Thank you for your questions, sir. I'll go down in the order that you asked the questions. Were TSOs not able to continue the pay that will begin on the 2nd of July, the impact would be devastating to air travel in the country. Wait times in our checkpoints would approach 2 hours, without question, and we would also significantly lose an experience base amongst the Transportation Security Officers. I mean, that's something that we saw over the prior 2 years is that our average experience level was going down by several months in major airport checkpoint operations, which is really not what you want to see. So the impact on TSOs would be incredibly visible and very debilitating for the transportation system. With respect to the others, depending on the--on the extent of the reduction and the number of people that left as a result, we might be challenged for Federal Air Marshals to provide in-flight security. We have a very risk-based approach for air marshal deployment so that we ensure air marshals are on flights where we know there's additional risk presented. That means that we're going to be accepting a whole lot more risk at 35- or 45,000 feet, which I don't think anybody, any of us in this room want to do. Additionally, our inspectors do amazing work with all of the owners and operators of transportation infrastructure in the country. I think we have a very good relationship as a regulator with the regulated parties, and I think we've been very responsible in that regard. Just to acknowledge the owners and operators of these systems, they've put a lot of investment into making sure that they meet the requirements that we have. We would not be able to be as good a partner with them as we are today. We have put out some very significant cybersecurity regulations over the last 2 years. We've been very targeted with this in terms of looking at the most critical owners and operators in a surface and an aviation sector, and also just targeting the critical cyber system. So we've tried to be as targeted as we possibly can be. We would lose a lot of that talent, and we would not be able to provide the cybersecurity baseline support to make sure that our critical transportation systems are protected. Importantly, if successfully attacked, they wouldn't be able to get back on their feet nearly as quickly. With respect to VIPRs, the visible intermodal protection and response, they have been a really great success story. I mean, there's 35 teams that work throughout the country. They work in support of Amtrak. They work in support of rail and other transit systems. Their name really--really describes well what they do. They have a visible presence. You know, our goal is to prevent as much as we can possibly prevent, and that visible presence on the part of an officer is very, very important. We are now providing more VIPR presence in airports to augment local law enforcement in airports. As you know, we have a concern about insider threat across critical infrastructure in the country. Having more presence provides the deterrence, and that's very beneficial. So all of those functions that you describe are critical to our success in making sure that the transportation system, which is the underpinning for the United States economy, remains safe and secure. Mr. Thanedar. Thank you so much. Chairman, I yield back. I look forward to meeting you soon and---- Mr. Pekoske. Thank you, sir. Mr. Thanedar [continuing]. And sitting down. Mr. Pekoske. Appreciate it. Me too. Mr. Thanedar. Yes. Mr. Pekoske. Thanks. Mr. Gimenez. Thank you. The Chair now recognizes the gentleman from California, Mr. Garcia. Mr. Garcia. Thank you, Mr. Chairman. I want to thank the administrator for serving, first, both our country as Vice Admiral of the Coast Guard and now as our administrator at TSA. I appreciated joining you and your team not that long ago for that conversation. The TSA, of course, is critical to securing our air travel, ports, highways, transit, pipelines. I'm grateful to the 60,000 Federal TSA workers that work hard every single day and are certainly an important line of defense. These workers deserve the dignity of their work to be protected and that starts, of course, with paying them as the professionals that they are. TSA workers traditionally have been paid lower than other Federal workers. That's something that you and I discussed and that's been brought up today at this hearing. We know that this is not acceptable and has a negative impact on quality, on retention, on folks being able to move within the organization, and for security preparedness which at the very core is the most important. TSOs have been treated also as second-class Federal workers in the past, but I'm grateful that there are steps being taken to improve that. The Biden-Harris administration is taking steps, as we know, to remedy this, from expanding full title 5 employee protections, to granting full collective bargaining rights, access to the Merit System Protections Board, and raising pay, all really important for the work force. The Biden-Harris administration and the Democratic Congress have also made a much-needed downpayment last year on pay equity, and now this Congress needs to keep its promise to these TSA works by fully funding pay equity. I'm a proud cosponsor of the Ranking Member's TSA act, Fund the TSA Act, which, of course, would fund pay increases and collective bargaining rights for front-line TSA employees, while ending fee diversion of the passenger security fee. We all know, of course, that the, unfortunately, the Republican Majority has fallen short, in our opinion, in their commitment to TSA workers. While keeping the higher pay for front-line TSO officers, the fiscal year 2024 Homeland Security Appropriations bill leaves behind a vast amount of TSA's work force, and they are being underpaid. Administrator, am I correct that under the marked-up Homeland Security bill, Federal Air Marshals, explosive specialists, and canine officers would face pay cuts that would place their pay well below similar officers in other departments? Mr. Pekoske. Yes, sir, you're absolutely correct. I'll give you one example. If you look at the Federal Air Marshals, law enforcement officers, their pay would be cut by 20 percent on average. That's a big cut. Mr. Garcia. Just so to be clear again, the current Homeland Security bill that has been marked up essentially lowers the pay for many of our TSA officers. That was a ``yes'' answer. That's honestly quite shameful and something that should be addressed by this committee. Am I correct in saying that lower pay and fewer civil service protections typically don't have a positive impact on employee morale and retention? Mr. Pekoske. Yes, sir, very correct, evidenced by the Federal Employee Viewpoint Surveys for TSA. Mr. Garcia. Thank you, sir. I'm not sure why the Republican House majority wants to actually cut the pay of our TSA workers. I'm not sure why they want to actually lower the morale and retention of our TSA workers. Am I correct also that low employee morale and a lack of retention has a negative impact on our Nation's security? Mr. Pekoske. It does. Mr. Garcia. So, again, I'm not sure why the House Republican Majority wants to actually have a negative impact on our Nation's security, but they're clearly doing that through the bill that's been marked up. Currently, the security fee paid by passengers is diverted to the general fund. Could you also just explain for us briefly how this is harmful to TSA worker pay and its technology and security functions? Mr. Pekoske. Yes, sir. About $1.56 billion in fiscal 2024 money gets diverted to deficit reduction, which means that that's $1.54 billion that can't offset the funding needs for TSA. It would basically raise our top line. Mr. Garcia. Thank you. That's a--that's an important answer. It just--just the last note, just more of a sidenote comment. I just want to also just commend the work force. Obviously, this is a very, very hard job. See a lot of your work force, of course, going through our airports, in and out of the airports, and I just want to thank them for clearly the adjustments that have been made, especially in the last few years, around treating all passengers with dignity, the bringing in of new technology, which I imagine has been a difficult transition. But the experience, at least I believe, of actually getting through security in the last few years for all passengers, whether it's through TSA PreCheck or--or--or the regular process, I think has improved. I think the technology has actually been a big part of that. I want to just note that the investments in technology and investing in TSA is not just a security concern, but it also is a customer service improvement for all of the folks that are going in and out of our airports. I just want to thank you for you and your team's work. Mr. Pekoske. Yes, sir. Thank you. Mr. Garcia. I yield back, Mr. Chairman. Mr. Gimenez. The gentleman yields back. The Chair now recognizes the gentleman from New York, Mr. LaLota. Mr. LaLota. Thank you, Mr. Chairman. Admiral, thanks so much for being with us. I appreciate all your decades of service in the Coast Guard and now with the TSA. Sir, I want to start off by saying thank you for doing that, for keeping our air safe, for keeping our skies safe. We appreciate that. A month ago or so, we met in my office. We had a very productive conversation. We talked about the important work that you're doing in the TSA, your vision for the TSA, the safety and security of my constituents and all Americans, and the balance between moving people through airports expeditiously and also keeping them safe. I look forward to continuing that conversation today, sir. Also in my office last month we spoke very specifically about the passenger security fee for which all travelers are charged each time they fly. That fee, as we know, is $5.60 for a one-way flight originating in the United States. Nominally speaking, those funds should go to airport security. However, as we discussed, Uncle Sam is taking a large part of those funds to pay for Government services having nothing whatsoever to do with aviation security. This is a classic Government bait-and-switch where the Government is telling air travelers to pay that fee to make them safer, but it's going elsewhere. A third of those funds, $1.2 billion last year, was used to fund Federal expenses having nothing to do with aviation security. That is why I, along with my colleague, Congressman Ruppersberger, recently introduced legislation to ensure those funds collected from that fee actually goes toward the stated intent, instead of being diverted to unrelated Government spending. Administrator, have you had an opportunity to review this legislation, sir? Mr. Pekoske. Yes, sir, I have. Thank you. Mr. LaLota. Do you have any views or feedback on it, its efficacy, its intents, its mechanics? Do you have any opinions on it, sir? Mr. Pekoske. Sir, I think it's a great idea. I mean, it's something that really began to be diverted in 2013. Fiscal 2024 was the first year it was in effect. Passengers are paying a 9/ 11 security fee on their ticket. It ought to go to aviation security, and it would help offset our pay challenge and also allow us to buy more technology. Because I--I agree a hundred percent that we ought to be able to put the best technology in the hands of our people. We ask them to do a very difficult job. We need to give them the tools to do that. Mr. LaLota. Especially when we're telling aviation travelers---- Mr. Pekoske. Right. Mr. LaLota [continuing]. Pay more for this service, I think it's only fair the Government is candid with them and actually use the funds they're collecting for that purpose. So I look forward to staying in touch with you on that legislation, sir. Switching gears. In your testimony, sir, you stated that only 38 percent of computed tomography procurements have been made for a full operational capable need for 2,200 or so CT machines. You've also estimated that based on projected funding, as it stands, it will take you until the year 2042 to fully deploy this CT technology. Is that correct? Mr. Pekoske. Yes, sir, that's correct. Mr. LaLota. Can you give me little insights? I mean, this is concerning, I think, to the committee. I think that we can do--do better. Do you have any insights on that, sir? Mr. Pekoske. One I would share with you that I think is particularly relevant, sir, is that we're in the position where we know exactly what we want to buy. We've bought a good portion of them already, and we have contracts in place to be able to do that. So we could spend easily triple what we're currently appropriated and not put new technology in warehouses. We could install in airports. This technology, in particular the CT technology, closes a known security gap for us that we need to close as quickly as we can. Mr. LaLota. Thanks. I look forward to working with you on both these issues, sir. Appreciate your time today. Mr. Chairman, I yield back. Mr. Pekoske. Thank you. Mr. Gimenez. The gentleman yields back. I'm going to go through a second round of questioning. Mr. Pekoske, what is the cost, additional cost, of giving the pay raises to everybody in TSA? Mr. Pekoske. The additional cost would be the cost for everybody beyond the TSOs, and I'd have to look at the exact budget numbers. The President's request was for an additional $1.1 billion, which is actually less than the $1.6 billion if we ended the fee diversion. So that's in addition to what---- Mr. Gimenez. That's not the question. So I'm asking you a very direct question. Mr. Pekoske. Uh-huh. Mr. Gimenez. What is the cost of giving everybody the pay raise? Mr. Pekoske. Sure. If you provide the pay raise to everyone, the annualized cost is about $1.5 billion. Mr. Gimenez. So--but the President only--we've only cut $128 million from the President's request. How are we going to fund that? Mr. Pekoske. Well, sir, I think where you start is the fee diversion. Mr. Gimenez. No, no, hold on a second. The President requested only $128 million more than what we appropriated. How are you going to fund over a billion dollars in pay increases with only $128 million? Mr. Pekoske. Sir, the President submitted a legislative proposal to end that fee diversion, and that's the pay-for. Mr. Gimenez. Fair enough. That's a good answer. OK. The fee diversion, how much is that? Mr. Pekoske. $1.56 billion. Mr. Gimenez. One-point-five-six. The whole fee diversion is going to pay for pay increases? Mr. Pekoske. It will pay for pay increases and technology investment, sir. Mr. Gimenez. Is that all you need? Mr. Pekoske. Oh, I could--we could spend a lot more money than what's there. I mean, I think pretty much every agency would say that, is that we're top-line constrained, which means that we have far more very high-priority needs than we have funds to be able to support it. Part of the issue here, sir, if I could, is, you know, these investments are long-term investments. Mr. Gimenez. I understand. Mr. Pekoske. Investments in people are long-term investments. Investments in technology are long-term investments. So you can't wish--let's say in a year we find a significant security concern, a threat. We shouldn't be in a position of wishing we had the technology that we know we need in place. Mr. Gimenez. It's about $11 round trip for an individual. Mr. Pekoske. Right. Mr. Gimenez. What is the actual cost per passenger of providing the services that TSA needs to provide in order to keep Americans and the traveling public safe? Mr. Pekoske. I don't have that number off the top of my head, sir, but we can get that for you for the record. Mr. Gimenez. Would you have a guesstimate? Mr. Pekoske. Well, you know, our budget is--let's say, round up the budget $11 billion, and let's say on an annual basis you have a billion passengers, right. Mr. Gimenez. Well, the more passengers you have, the more income you have too. I'm asking---- Mr. Pekoske. Right. Mr. Gimenez [continuing]. So it's a per-passenger cost. Mr. Pekoske. Right. Mr. Gimenez. So as your passenger loads goes up, so does your revenue. Mr. Pekoske. It does. Mr. Gimenez. Right? Mr. Pekoske. Yes, sir. Mr. Gimenez. OK. So what is your per-passenger cost to provide the services, to provide all your--your employees a--a decent rate of pay and then all the technology that you need in order to keep the traveling public safe, in your estimation? Mr. Pekoske. I would have to get--you know, I'd have to figure that number out and get that number to you for the record, and we'll show you how we calculated it. Mr. Gimenez. OK. Thank you. I yield back. Anybody--oh, now I have--I recognize the gentlewoman from Florida, Ms. Lee. Ms. Lee. Good afternoon. Thank you for being here, sir. Administrator Pekoske, I'd like to bring up TSA's work specifically on cybersecurity. On March 7 of this year, TSA issued a cyber-related joint emergency security program amendment, EA 2301, for certain TSA-regulated airports and aircraft operators to implement cybersecurity measures. Under this EA, airports and aircraft operators, including Tampa International Airport, which serves many of my constituents, are required to transmit sensitive information to TSA over email. I am concerned that this is potentially putting that information, putting that very sensitive information at risk in the event of a cyber attack against TSA. All of this information from airports around the country could be accessed by a bad actor. If--so my question will begin here. If it is standard practice of TSA, which I understand it is, to conduct extensive on-site inspections of critical cyber-related systems, why is TSA now implementing this process that would require transmission via email of this type of sensitive information for storage about critical airport and airline systems at your site? Mr. Pekoske. Yes, ma'am. Great question. We benefited significantly from the input from our airport and airline partners on this, and we have changed that policy where they can keep that information locally. We'll inspect it locally. Ms. Lee. That is great to hear. In fact, you just led into one of my other questions. I would love to hear more about that. What kind of engagement did you have with the stakeholders and the airports in making changes or revisions to that policy? Mr. Pekoske. I would say--and, you know, the airports and the carriers would be a good--a good group of people to ask as well. I think we have a really very productive and positive relationship with the owners and operators of critical infrastructure. Airports and airlines are very much included in that category, and we have regular dialog back and forth all the time. We understand the concern. We looked at it carefully. We think we could provide some mitigations for it, but I didn't want that issue to be the issue that prevented us from making progress on improving cyber protections and improving cyber resiliency. So fair point. Let's just go the site and look at the data that they have there. It makes sense, from my perspective. Really I--I value the fact that airports and airlines feel that they can--they can come back and say to us, no, hey, we disagree with that. Importantly, we will listen to what they say, consider carefully what they say. Generally, we provide an answer that I think at the end of the day both of us, walking away, would say that makes sense and let's just move forward. Ms. Lee. So just to be sure that I'm clear. So then at this point that is no longer the requirement, that they take that information and email it to TSA for storage there? Mr. Pekoske. That's correct. Ms. Lee. All right. Very good. Tell me generally, what policies and practices does TSA have in place for itself to protect in the event of a cyber attack or incident? Mr. Pekoske. Yes, ma'am. You know, one of the President's Executive Orders is to make sure that the Federal Government leads in this regard, because many of us are placing requirements on private-sector entities and other levels of Government entities. So we wanted to make sure that we were setting the right example in that regard. So we are moving aggressively to put a zero trust framework in place around all of our cyber systems. We've increased our cybersecurity training. We've brought more cybersecurity experts on board. I think that, at least in my experience, working with pipelines and rail systems, airports and airlines, we have all collectively learned a lot in this process. So I--you know, I think the transportation sector is so much better off now 2 years later than we were when we first started putting these requirements in place. I'll give you one classic example. Back in May 2021, we didn't know how many cyber incidents were occurring in the pipeline sector or in the rail sector or in the aviation sector. Now we have a reporting requirement. So we know. So if somebody gets attacked, they can call back to CISA, which is an important point, because, you know, that's the central repository for that reporting, which has worked very well, and understand that, hey, I might not be alone here. You know, there are others that are experiencing the same things and help them contextualize what's going on. Ms. Lee. If you would, elaborate on that last point. I'd love to hear more about the way in which you're working with CISA and some of the successes and utility that you've gotten out of the relationship with CISA. Mr. Pekoske. Yes. CISA is one of our key--and we have two key partners overall. One is with CISA. The other is with the Department of Transportation, because DOT has the safety side of the transportation sector. Oftentimes, something that you might do for cybersecurity from a security perspective might have a safety impact that you're not mindful of or vice-versa. So we work very closely with DOT, the modes; FAA for aviation--the pipeline has this material safety agency for pipelines--and also with the FBI from a threat perspective. So it's a very, very good relationship. One of the things that we want to be able to provide to our industry partners is a more unified perspective on the part of the Government agencies that are involved. Mr. Gimenez. The gentlelady's time has expired. I recognize the gentleman from Louisiana. Mr. Higgins. Administrator Pekoske, referencing what we discussed a moment ago, the aviation passenger security fee. Let's visit that again. It seems to me that that would be a game-changer for TSA to have that money returned, correct? Mr. Pekoske. It would. Yes, sir. Mr. Higgins. There's a lot that we could get done within the parameters of a conservative budget projection if you had that money returned to TSA? Mr. Pekoske. Yes, sir. Mr. Higgins. I concur. It occurred to me, based upon your projections for increased traffic per day, moving from 2.2 million a day--which is, again, hard to believe that you guys handle that amount of traffic, but it's true. You're looking at over 3 million a day in the peak of the summer travels, you're saying. So if you--if TSA received a aviation passenger security fee, which currently for a round-trip ticket is $11.20--and granted, everyone is not traveling round trip that would come through--but we could project a large increase in your daily and monthly income to fund TSA operations if you receive that fee. Because as traffic goes up--a TSA security checkpoint has relatively static expense whether it's busy or not, correct? Mr. Pekoske. Right. Mr. Higgins. So if you increase the number of passengers, you have the same expense for operating the TSA checkpoint, give or take maintenance expenses, et cetera. But with the static expense for operating a TSA checkpoint, if you're able to receive the aviation passenger security fee back into your funding, especially considering increased traffic when you won't have increased expense to operate, but you'll have increased funding because of the increased traffic. Am I seeing this correctly? Mr. Pekoske. Yes, sir, you're seeing it correct. The only thing I'd add is that your maintenance cost will go up with more traffic sometimes. Mr. Higgins. A little bit. Mr. Pekoske. But not--you know, your core concept, I 100 percent agree with. Mr. Higgins. All right. Well, again, sir, thank you for appearing before the committee today. Mr. Chairman, I yield. Mr. Gimenez. Thank you. I'm going to just--one more--one more round for me, OK? All right. How many passengers a year do you process? Domestic passengers? Mr. Pekoske. I would have to get back to you with the domestic number. I know the overall number is close to a billion per year. We're at 550 million already this year. So we will easily exceed a billion by the end of this calendar year. Mr. Gimenez. OK. A billion--OK. Let's say it's a billion. So a billion at 560-? A billion at 560-, because a billion passengers, that's wherever. It's 560-. That's just not---- Mr. Pekoske. Five-hundred-sixty--. Right. Mr. Gimenez. So you're getting, you know, $5,600,000,000 from your passenger fee. What does it take to fund your agency? Mr. Pekoske. About $11 billion, sir. Mr. Gimenez. Eleven billion. So it's half of what it actually takes to fund your agency. Mr. Pekoske. Uh-huh. Right. Mr. Gimenez. OK. One more thing. Of the $1.6 billion that's actually being diverted, you said that you could get--you could pay for the pay raises and also technology. How much is it for pay raises? Mr. Pekoske. The additional funds we need for the pay raise is 1.1, because we already have money from fiscal year 2023 appropriated. So the increase is 1.1. Mr. Gimenez. Well, then I got--then have another question, OK? In my figures, it says it's $856 million to pay for the pay increases for the rank-and-file. You're saying it's more money to pay for the non-rank-and-file? It's more expensive to pay for those folks than it is for just the bulk of the rank-and- file? Mr. Pekoske. No, sir. What I'm saying is that the--we were appropriated about 300-some-odd million--$380 million last year for pay. That is in our base. So that carries forward into 2024. When you go into 2024, you just ask for the increase that you need to be able to sustain full-year funding for that pay. That increase is another $1.1 billion. So that gets you to the $1.4 that I talked about. Mr. Gimenez. Well, you had it for a quarter. Mr. Pekoske. Right. Mr. Gimenez. OK. So you need $856- to fill out the other three quarters. Or a quarter--no. It'd be about $300 million. Three hundred million per quarter. Is that what you got? Mr. Pekoske. Three-hundred-eighty--. Yes, sir. Mr. Gimenez. OK. So $380-. So it costs just as much to pay for the upper echelon folks in TSA as it does for the rank-and- file? Mr. Pekoske. No, sir. That $380- includes everybody. Mr. Gimenez. No. You said it would--it would take $1.1 billion to pay for the pay increases for the folks that aren't getting the pay increases? Is that what you said? Mr. Pekoske. No, sir. The 1.1 is to annualize--to take the one-quarter funding and turn it into four quarters' worth of funding in fiscal 2024. Mr. Gimenez. For everybody? Mr. Pekoske. For everybody. Yes, sir. Mr. Gimenez. For the--we gave you $856 million additional for the rank-and-file this year. All right? So if you say that the base for that is already in, and then you say, OK, it's $1.1 billion for the rank-and-file, but you're telling me it's $1.1 billion for the non-rank-and-file. What percentage of your work force is the non-rank-and-file versus the rank-and-file? Mr. Pekoske. Sir, the Transportation Security Officers--the uniformed work force is about 80 percent of our work force. Mr. Gimenez. The TSA--the people that are getting a raise? Mr. Pekoske. Yes, sir. Mr. Gimenez. So how could 20 percent of the work force end up paying just as--costing just as much as the 80 percent of the work force? Mr. Pekoske. Right. Because that money that provides for the TSOs needs to be carried over for four quarters' worth of funding into 2024. So you're paying for that as well. Mr. Gimenez. No. You're not getting the question. You're telling me that for 80 percent of the work force you need $1.1 billion. But you're also telling me that for 20 percent of the work force you need $1.1 billion. That doesn't equate to me. Mr. Pekoske. Oh, I'm sorry. No. For the entire work force, to annualize what we received in 2023, we need an additional $1.1 billion. Mr. Gimenez. But you're already getting $856 million more in this next fiscal year to pay for your 80 percent. Mr. Pekoske. Uh-huh. Mr. Gimenez. So how much is--how much more do you need for the 20 percent that you say are getting a pay cut? You're telling us it's $1.1 billion. To me, it doesn't--doesn't equate, OK? So---- Mr. Pekoske. We'll figure out the---- Mr. Gimenez. Well, no, I got to figure it out because, you know what, it doesn't equate to me. So if you got 20 percent of your work force is costing as much as 80 percent of your work force, there's something wrong. Mr. Pekoske. Yes. OK. So we have $380-. We're asking for 1.1---- Mr. Gimenez. You have $380- when we've given you $856 million more to fund for the 80 percent. That's in this budget, OK? That's in our appropriation. We've asked the question a number of times. If you got the passenger fee back, $1.6 billion, how much of it--you know, how much of it do you need to fund the other 20 percent? You give me a number like $800 million or a billion dollars, OK? It doesn't make sense to me how 20 percent of the work force can cost as much as $80 percent of the work force. If that's the case, that means your 20 percent is making a heck of a lot of money. So where is it? Where are we? Mr. Pekoske. So the non-TSO work force does make more money than the TSO work force, as they're higher-banded. So if you looked at the rest of the Federal Government, they would be-- you know, let's say general schedule, 12, 13, 14 steps, where the TSO work force would be 5, 7, 9, maybe 11. OK. Mr. Gimenez. OK. So you know what? Now I'm going to need what--who's making what. Mr. Pekoske. Sure. Mr. Gimenez. OK? Because that doesn't make sense to me, OK? The 20 percent, no matter how much--they're making a heck of a lot more than everybody else. So I've got to see what that is, OK? Mr. Pekoske. Sure. Mr. Gimenez. So I need to see--those folks that you're saying that are going to get a pay cut, what are they making? How much total are they making? What percentage of your work force it is? Then the ones that are getting the pay raise, which is 80 percent--right--how much are they making? All right? So--you know, look, I want to be fair with everybody, but again, you know, I want to make sure that I got this whole thing straight. Mr. Pekoske. I understand. If I could just add one comment to that, sir, is that we're asking for the people to be paid at the same level that their other Federal counterparts are being paid. We're not asking for money that other people working in the Federal Government don't receive for the same grade level. Mr. Gimenez. I understand that. But, you know, I ask questions a certain way because I expect them to come out a certain way. I don't expect your answer to come out a certain way, but I expect--OK. When I see something like that, that 20 percent, according to you--maybe you're wrong, I don't know--20 percent is costing as much as 80 percent, there's something wrong there, OK? So, you know, I got to check that out. Mr. Pekoske. OK. Mr. Gimenez. My time is over, but I'm the Chair, so I can do whatever. Mr. Higgins, do you have any follow-up on this? Mr. Higgins. Just an observation, perhaps, Mr. Chairman, from your line of questioning here. In the interest of just clarity, I believe that what TSA was dealing with is that it's not that the 20 percent of the work force was overpaid; it's that the 80 percent of the work force was underpaid. We're adjusting that now. It does bring parity to those numbers. But, again, to use your numbers, in the interest of simplicity, 80 percent of the work force was falling in one- third--in the lower one-third of comparable pay bands across the Federal Government in similar jobs. The 20 percent of the work force was falling in the upper one-third of the pay bands for similar jobs across the Federal Government. So that puts them in the upper one-third. It doesn't put them at the top. So it's not that they were--it's not that 20 percent of the work force was overpaid or is overpaid, it's that the 80 percent was underpaid. We made those adjustments. Is that a fair summary, sir? Mr. Pekoske. That's fair. Yes, sir. Mr. Higgins. A productive meeting and hearing, Mr. Chairman. I yield. Mr. Gimenez. Thank you very much. It has been productive. I do want to see those figures. Look, from my perspective, maybe the traveling public needs to have excellent services, which you provide, and then, you know, what they pay for--they should be getting the services that they're paying for. So I agree with my colleague. I thank the witness for your valuable testimony and the Members for their questions. The Members in the subcommittee may have some additional questions for the witnesses and we would ask the witness to respond to these in writing. Pursuant to committee rule VII(D), the hearing record will be open for 10 days. Without objection, the subcommittee stands adjourned. Thank you. [Whereupon, at 3:34 p.m., the subcommittee was adjourned.] [all]